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Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for February 2023 of $27.4 trillion (tn). Average daily volume (ADV) for the month was a record $1.43tn, an increase of 21.5 percent (%) year-over-year (YoY).
Tradeweb's broad offering across products, geographies and client sectors resulted in a number of records for February 2023 including:
- ADV in European government bonds
- ADV in European credit
- ADV in total rates derivatives
- ADV in swaps/swaptions ≥ 1-year
- ADV in swaps/swaptions < 1-year
- ADV in U.S. retail government bonds
- ADV in U.S. credit Tradeweb AllTrade®, including sessions-based trading
We continued to help our clients navigate a complex macroeconomic backdrop, including evolving central bank policy, sustained elevated volatility, economic concerns and a strong U.S. dollar.
February 2023 Highlights
RATES
- U.S. government bond ADV was down 6.2% YoY to $144.3 billion (bn). European government bond ADV was up 2.9% to $43.2bn.
- Record U.S. retail government bond activity was more than offset by declines in wholesale trading. Higher interest rates continued to drive trading in the retail market. European government bond volume continued to be supported by heightened issuance and rates market volatility.
- Mortgage ADV was down 9.1% YoY to $167.7bn.
- Historically high mortgage rates continued to weigh on overall market activity and issuance.
- Swaps/swaptions ≥ 1-year ADV was up 43.2% YoY to $304.2bn and total rates derivatives ADV was up 62.2% to $597.7bn.
- Record volume in swaps/swaptions was driven in part by a surge in Overnight Index Swaps (OIS) trading, while strong volumes continued to be supported by global inflation and emerging markets swaps and robust client adoption of the request-for-market (RFM) protocol.
CREDIT
- Fully electronic U.S. Credit ADV was up 28.2% YoY to $5.1bn and European credit ADV was up 4.5% to $2.2bn.
- Record European credit and strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade and portfolio trading. Record activity in Tradeweb AllTrade, including sessions-based trading, supported robust activity in fully electronic U.S. High Yield and U.S. High Grade. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 13.1% and 6.8%, respectively.
- Municipal bonds ADV was up 34.3% YoY to $337 million (mm).
- Strong municipal volumes reflected healthy institutional and retail client activity. Market volatility and elevated interest rates continued to boost volumes overall.
- Credit derivatives ADV was down 37.5% YoY to $10.5bn.
- Overall market volumes were lower due to subdued credit market volatility.
EQUITIES
- U.S. ETF ADV was down 22.9% YoY to $7.2bn and European ETF ADV was down 24.3% to $2.8bn.
- Strong U.S. institutional ETF activity, driven by further adoption of Tradeweb’s request-for-quote (RFQ) protocol, was more than offset by declining wholesale volumes. European ETF volumes reflected declining overall market volumes.
MONEY MARKETS
- Repurchase Agreement ADV was up 16.7% YoY to $411.3bn.
- Continued client adoption of Tradeweb’s electronic trading solutions drove Global Repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity continued to be strong as interest rates remained elevated.
Please refer to the report posted to https://www.tradeweb.com/newsroom/monthly-activity-reports/ for complete information and data related to our historical monthly, quarterly and yearly ADV and total trading volume across asset classes.
